Common use of Terms of the Clause in Contracts

Terms of the. DOWN-MACRO TRADEABLE SHARES SECTION 6.1 Authorization and Designation of Down-MACRO Tradeable Shares. (a) The Trust is authorized to issue undivided beneficial interests in the Trust Property, which shall be designated the "MACROShares Down Oil $[ ] Tradeable Shares." (b) The Trust shall issue only one class of Down-MACRO Tradeable Shares and is not authorized to issue any other securities. (c) On the Closing Date, the Depositor has delivered the Initial Deposit to the Trustee, and the Trustee acknowledges that it has received the Initial Deposit and credited such deposit to the Securities Account of the Trust. The Trustee hereby declares that, subject to the terms and conditions of this Trust Agreement, (i) the Initial Deposit and (ii) all other assets owned by the Trust from time to time shall be owned by the Trust for the use and benefit of all present and future Holders in accordance with their respective beneficial interests as the same may be constituted from time to time. The Trustee hereby confirms that, in exchange for the Initial Deposit, the Trustee has issued Down-MACRO Tradeable Shares constituting the Creation Units ordered to DTC and that, upon the registration statement for the sale of the Down-MACRO Tradeable Shares being declared effective, the Trustee will direct DTC to credit to the account of the Depositor its shares constituting the Creation Unit(s) ordered. (d) The Depositor hereby instructs the Trustee to execute the Down-MACRO Tradeable Shares, the Certificates and any certificate of authentication on such Certificates relating to the Down-MACRO Tradeable Shares required to be executed pursuant to Section 9.1 and any other certificate required to be executed pursuant to Section 9.5, to execute each of the Trust Documents on behalf of the Trust, and to cause the Trust to perform its obligations thereunder. (e) Each Down-MACRO Tradeable Share shall represent an undivided beneficial interest in the Trust Property. The specific rights, terms and preferences of the Down-MACRO Tradeable Shares are as set forth herein and in accordance with the terms of this Trust Agreement (including the requirements of Section 11.2 and Section 11.3 of this Trust Agreement). Any amendment to the Certificates shall have the status of an amendment to this Trust Agreement. (f) The authorization of the Down-MACRO Tradeable Shares shall be effective upon the execution by the Trustee of the Certificates. The Down-MACRO Tradeable Shares are deemed to be equity securities for all purposes under New York law. (g) Down-MACRO Tradeable Shares issued and sold in accordance with this Trust Agreement and as contemplated in the Participants Agreement shall be deemed to be duly issued, fully paid and non-assessable; provided, however, that Down-MACRO Tradeable Shares will be issued only in minimum numbers equal to one or more Creation Units. (h) All Down-MACRO Tradeable Shares shall represent equal proportionate beneficial interests in the Trust Property (subject to the liabilities of the Trust), and each Down-MACRO Tradeable Share shall rank equal with each other Down-MACRO Tradeable Share.